Simplot representatives and vegetable growers have met with the Federal Minister for Agriculture Joel Fitzgibbon, to discuss the future of the embattled vegetable processing company.

For the first time since the threat of the closure of the vegetable processing plant in Devonport, Simplot has proposed government funding to improve productivity for growers.

Despite declaring almost two months ago that the company did not want government support, Simplot Australia managing director Terry O'Brien has proposed a government funding package, but won't say for how much.

"Essentially it's making use of a number of the current plans and schemes that are available through government funding, to try and group it together and put it in the hands of Tasmanian and NSW growers," he said.

"It's in an attempt to, over three to four years, make them more competitive right to the point of even being export competitive."

Mr O'Brien says this is the first time growers and company representatives have sat down as a group and tried to identify and collate every funding opportunity available to growers in Australia.

"It involves in some cases low interest loans, in some cases assistance to take up new technology, or indeed increase the equipment side of growers properties to make them more competitive."

The Agriculture Minister met representatives from the company as well as growers to hear the proposal on Wednesday night.

He hasn't committed any funding to the company, and says he didn't come down to Tasmania with a bag full of money.

"You don't want the government running the sector, you want the private sector running your agriculture and innovating and lifting productivity and feeding Australians," he said.

Mr Fitzgibbon pointed to the burgeoning boom in Asian export markets for Australian produce as the way forward.

"We are now facing a dining boom," he said.

"We have the opportunity to feed Asia - that's a big opportunity for Australia."

Mr Fitzgibbon has said he'll explore possible funding options for the company through the National Food Plan

"It's not just a document the Food Plan, it is backed by real money," he said.

"For example, there is $18 million available to help Australian growers and other firms identify other opportunities in Asia, and therefore look at other ways of marketing those opportunities."

Head of the Simplot Vegetable Growers Group, Andrew Craigie, was at the meeting, and says he thought the minister seemed invested and supportive, but negotiating the system could prove difficult.

"That's the hard thing," he said.

"Negotiating through the different parts of the system to achieve what we think we require as an industry."